Mirvac joins CIC in Canberra project

Mirvac
Group has invested in two major master-planned community projects, one on Melbourne’s urban fringe and the other near Canberra.

It will jointly develop the $1.7 billion Googong project outside ­Can­berra with listed development minnow
CIC
Australia, and a 200-hectare parcel of land at Clyde North, 50 kilometres south of central ­Melbourne.

Mirvac will be a 50-50 partner with CIC in the 780 ha Googong development.

There will be about 5500 dwellings, parks, community facilities and a town centre.

The project, 18km from Canberra’s centre, has master-plan and development approval for its first and second stages, totalling 337 lots. It will eventually house about 16,000 people.

A joint management committee, including senior staff from both ­companies, will oversee the project.

Marketing of the first stage will start early next year.

CIC, which has a market capitalisation of about $53 million, flagged its desire to find a partner to build the 20-year project or to merge with a ­bigger developer some time ago.

Related Quotes

Company Profile

CIC chief executive Col Alexander said Mirvac had been selected after an expressions of interest campaign.

“It’s a huge project and will be the biggest subdivision in the Canberra region," he said.

Tightly held CIC’s share price rallied following the news, closing up 7.5 per cent at 43¢ yesterday.

Mr Alexander said that the market had been undersupplied for some time and there was pent-up demand for new housing south of Canberra.

House prices in the city slipped 1.1 per cent over the year to October compared with an average national capital city decline of 4 per cent, RP Data/Rismark found.

At Clyde North, Mirvac will develop about 2000 homes, parks and community facilities.

Mirvac managing director
Nick Collishaw
said the investments were in line with the company’s residential strategy.

Mirvac will also, in the next year, work closely with the Victorian government and Melton Shire Council to advance its plans for the 700 ha ­Rockbank North project, which is expected to include 7000 homes and house 19,000 residents.

The projects were expected to add to the group’s earnings from 2013, Mirvac said.